the final\u00a0verdict<\/p>\n
The CLARITY Act didn’t get passed, and the crash-out has been harder than we expected.<\/p>\n
Institutions within the industry, the CFTC, and even the SEC are now finding ways to manage the development.<\/p>\n
If you\u2019re new here and don\u2019t know what the CLARITY Act is about, we explored a bit of that in our piece\u00a0here<\/a>.<\/p>\n To advance the CLARITY Act, the bill needed at least 60 votes from the Senate. That wasn’t the case. The procedural vote ended 49\u201350, falling short of the 60 votes needed to move the bill\u00a0forward.<\/p>\n The vote on Tuesday was therefore an unsuccessful one for the crypto and legal communities that had been pushing for the legislation.<\/p>\n In response, the CFTC and SEC are moving forward with regulatory work within their existing jurisdictions. The CFTC has indicated that it can continue developing rules for digital assets within its authority, while the SEC is taking a similar approach.<\/p>\n And it’s not just the legal community. Institutions within crypto have also expressed how much of a setback the failed vote\u00a0is.<\/p>\n For institutions within the crypto industry, the reaction has largely centred around the uncertainty that has already existed within the U.S. crypto market and how much more difficult that uncertainty makes their\u00a0jobs.<\/p>\n Ripple’s CEO, Brad Garlinghouse, has also argued that clearer legislation would make it easier for products to launch and for more investment to enter the industry.<\/p>\n For the broader crypto community, however, the reaction has been\u00a0mixed.<\/p>\n Happy, sad, disappointed\u200a\u2014\u200ait’s all there from the various X posts we’ve been coming\u00a0across.<\/p>\n But one of the clearest indicators has been the market’s reaction.<\/p>\n Bitcoin dropped around 4% following the Senate’s failure to advance the bill, while several crypto-related companies and major assets also recorded significant declines. Coinbase, for example, fell sharply following the\u00a0vote.<\/p>\n The reaction reflected just how much regulatory clarity had been priced into parts of the industry.<\/p>\n A lot of the conversation around the CLARITY Act has also used MiCA as a comparison. But I don’t think it’s a completely fair comparison in the long\u00a0run.<\/p>\n MiCA is already an established EU-wide regulatory framework covering crypto-assets and related services. CLARITY, on the other hand, is a proposed U.S. framework that would largely clarify the division of responsibility between the SEC and\u00a0CFTC.<\/p>\n They are both attempts to bring more structure to crypto, but they are doing it through very different regulatory systems.<\/p>\n So, what does the failed vote actually\u00a0mean?<\/p>\n For now, it means more uncertainty.<\/p>\n The CLARITY Act not advancing on Tuesday didn’t necessarily kill the idea of clearer crypto regulation. It pushed the conversation further down the\u00a0road.<\/p>\n And in the meantime, the SEC and CFTC will continue doing what they can within their existing authority.<\/p>\n Maybe the bill returns with more negotiations, more amendments and eventually enough support to move\u00a0forward.<\/p>\n Maybe the U.S. takes a different approach altogether.<\/p>\n But until then, one thing remains\u00a0clear:<\/p>\n No CLARITY Act still means no\u00a0clarity.<\/p>\n And for an industry that has spent years asking for a clearer regulatory structure, that’s still a pretty big\u00a0deal.<\/p>\n The CLARITY Act Update<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":" the final\u00a0verdict The CLARITY Act didn’t get passed, and the crash-out has been harder than we expected. Institutions within the industry, the CFTC, and even the SEC are now finding ways to manage the development. If you\u2019re new here and don\u2019t know what the CLARITY Act is about, we explored a bit of that in […]<\/p>\n","protected":false},"author":0,"featured_media":229197,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-229196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/229196"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=229196"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/229196\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/229197"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=229196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=229196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=229196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}